Himachal High Court Bans Use of Temple Funds for Government Welfare Schemes

In a significant ruling reinforcing the separation of religion and state finances, the Himachal Pradesh High Court has prohibited the state government from utilising temple donations for public welfare or non-religious schemes. The decision, delivered by a Division Bench of Justice Vivek Singh Thakur and Justice Rakesh Kainthla, marks an important precedent for protecting religious endowments and ensuring accountability in temple administration.

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The Case: Petition for Transparency and Religious Autonomy

The order came while disposing of a petition filed by Kashmir Chand Shadyal, who sought strict compliance with the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984. The petitioner raised concerns that donations made by devotees to temples were being diverted toward general government welfare schemes — a move that, he argued, violated both the intent of the Act and constitutional principles protecting religious freedom.

The court agreed, ruling that temple donations must be used solely for religious and dharmic purposes, not for the State’s welfare projects.

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Court’s Observations: Temple Funds Are Not Public Revenue

The High Court held that the money donated to temples cannot be treated as part of the state’s general revenue or exchequer. The Bench observed:

“Every rupee of temple funds must be used for the temple’s religious purpose or dharmic charity. It cannot be diverted to any welfare scheme or public work unrelated to religion.”

This ruling draws a clear boundary between devotional offerings and state finances, emphasising that the State acts merely as a trustee when it manages temple affairs, not as an owner of the funds.

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Key Directives from the High Court

The Bench issued a series of practical measures to ensure transparency and accountability in temple fund management:

1. Exclusive Use for Religious Purposes:
   All funds collected by temples must be spent on religious, dharmic, or charitable causes directly connected to the temple’s purpose.

2. Public Disclosure of Accounts:
   Each temple must display its monthly income and expenditure, project details, and audit summaries either on notice boards or official websites, to maintain transparency.

3. Annual Audit and Accountability:
   Temple accounts must be audited annually, and results must be made public to ensure proper utilisation of funds.

4. Recovery from Trustees in Case of Misuse:
   If any trustee or temple official is found guilty of misusing funds, the amount must be recovered personally from them.

The court emphasised that such oversight would help restore devotees’ faith in temple management and ensure that funds are used ethically and lawfully.

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Constitutional Framework: Freedom of Religion and State’s Role

The ruling directly touches upon key constitutional provisions that safeguard religious autonomy and prohibit state interference in the internal affairs of religious institutions.

1. Article 25 – Freedom of Religion

Grants every individual the right to freely profess, practise, and propagate religion, subject to public order, morality, and health. The misuse of temple funds for secular purposes can be seen as a violation of this religious freedom.

2. Article 26 – Freedom to Manage Religious Affairs

Gives every religious denomination the right to:

• Establish and maintain institutions for religious and charitable purposes.

• Manage its own affairs in matters of religion.

• Own and acquire movable and immovable property.

• Administer property according to law.

The Himachal HC’s ruling reinforces this autonomy, asserting that the State cannot appropriate temple wealth under the guise of welfare.

3. Article 27 – Prohibition Against Compulsion to Pay Taxes for Religion

Prohibits the use of tax revenues for promoting or maintaining any particular religion. By logical extension, it also prevents religious donations from being diverted to state-run secular programs, which would distort the intended religious use of funds.

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The Legal Basis: The Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984

The 1984 Act governs the administration of Hindu temples and charitable endowments in Himachal Pradesh. It mandates that:

• Temple funds must be used strictly for religious, charitable, or temple-related purposes.

• The state acts as a custodian to ensure proper management, not as an owner of temple property.

• Temple trustees are required to maintain transparent records of income and expenditure.

By invoking this law, the High Court reasserted that public donations cannot be merged with general government accounts, nor can they be redirected to unrelated welfare schemes, even if those schemes are for the public good.

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Why the Judgment Matters: Upholding Devotee Trust and Secular Integrity

This judgment carries wider implications beyond Himachal Pradesh. Across India, several state governments administer large temple networks — including Tamil Nadu, Kerala, Andhra Pradesh, and Karnataka — where similar concerns over fund utilisation have been raised.

Key takeaways include:

• Protection of Devotee Intent: Temple donations represent personal faith, not public revenue.

• Transparency in Religious Administration: Mandatory audits and public disclosures can deter corruption.

• Preservation of Secular Balance: The ruling affirms that while India is a secular state, secularism does not permit the appropriation of religious wealth for governance.

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Conclusion: Reinforcing the Line Between Faith and Governance

The Himachal Pradesh High Court’s order marks a strong reaffirmation of constitutional secularism and religious accountability. By drawing a clear line between faith-based funds and state expenditure, the court ensures that the sanctity of temples remains intact and that devotees’ trust is honoured.

This decision sends a powerful message to all states: while the government may regulate temple administration for fairness and transparency, it cannot repurpose religious funds for its own public welfare schemes.

In essence, the temple treasury is not the government’s exchequer — it is a sacred trust, meant solely for dharmic use.

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